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jhuffman comments on The Craigslist Revolution: a real-world application of torture vs. dust specks OR How I learned to stop worrying and create one billion dollars out of nothing - Less Wrong
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Revenue generated this way is not necessarily new charity revenue. Some people will donate about the same amount of money to charities every year - what may vary is which ones get their attention.
I think you had the same misunderstanding as this person: http://lesswrong.com/lw/1qf/the_craigslist_revolution_a_realworld_application/1lth In short the idea is not to give free ads for charities, but to put up normal commercial advertisements and give the proceeds to charity.